MSC Industrial Direct Co., Inc. (NYSE: MSM) Earnings Report Highlights

• MSC Industrial Direct Co., Inc. (NYSE:MSM) reported a +4.85% positive earnings surprise with an EPS of $1.08, surpassing the estimated $1.03.
• The company experienced an 18.8% decline in EPS year-over-year, indicating profitability challenges.
• Despite a slight revenue increase to $971.1 million, MSM saw a 0.8% decrease from the previous year, with a notable improvement in gross margin to 41%.

MSC Industrial Direct Co., Inc. (NYSE:MSM), a leading figure in the industrial supply sector, recently unveiled its third-quarter fiscal 2025 earnings. The company's earnings per share (EPS) of $1.08 not only exceeded the anticipated EPS of $1.03 but also marked a positive earnings surprise of +4.85%, as reported by Zacks.

Despite this achievement, MSM's EPS of $1.08 signifies an 18.8% decline from the prior year. When including one-time items, the EPS adjusted to $1.02, a decrease from $1.27 in the corresponding quarter of the previous year. This downturn reflects the hurdles MSM faces in sustaining its profitability levels year over year.

The company's revenue for the quarter stood at approximately $971.1 million, marginally surpassing the forecast of $969.2 million. Nevertheless, this figure represents a 0.8% decrease from the $979 million reported in the same timeframe last year, with a decline in average daily sales as a contributing factor, according to CEO Erik Gershwind.

Despite these revenue challenges, MSM's gross margin saw an improvement to 41%, demonstrating the company's efficient cost management capabilities. However, the adjusted operating income experienced a significant reduction of 21.8%, totaling $87 million. This decrease in operating income underscores the effects of diminished sales on the company's overall profitability.

Key financial metrics, such as a price-to-earnings (P/E) ratio of approximately 25.44 and a price-to-sales ratio of about 1.35, offer insights into MSM's market valuation. The debt-to-equity ratio, standing at roughly 0.42, reveals a balanced approach to financing its assets. Despite facing several challenges, MSM remains committed to concentrating on strategic areas to foster future growth.

Shares of MSC Industrial Direct (NYSE:MSM) rose more than 4% intra-day today after the company reported fiscal third-quarter results that topped earnings expectations, even as profits and sales declined year-over-year.

Adjusted earnings per share came in at $1.08, beating the consensus estimate of $1.03. Revenue was $971.1 million, just above the expected $970.26 million. However, net sales were down 0.8% from the same period last year, and adjusted diluted EPS fell nearly 19% from $1.33, reflecting ongoing softness in industrial demand. Adjusted operating income was $87.2 million, translating to an adjusted operating margin of 9.0%, down from 11.4% a year ago.

Looking ahead, MSC guided for fourth-quarter average daily sales growth between -0.5% and 1.5% year-over-year. The company reaffirmed its full-year outlook, including expected free cash flow conversion of roughly 120% and capital expenditures between $100 million and $110 million.

Despite persistent headwinds, the Q3 beat and confirmation of its financial targets helped reassure investors, sending shares higher on hopes of stabilization in industrial markets.

MSC Industrial Direct Co., Inc. (NYSE:MSM), a key player in the industrial services sector, specializes in providing a wide range of industrial products and services, catering to various industries. It competes with other industrial supply companies, striving to maintain its market position through strategic initiatives and financial performance.

On July 1, 2025, MSM reported earnings per share (EPS) of $1.08, surpassing the estimated $1.03. This marks a positive surprise of 4.85%, as highlighted by Zacks. However, it's a decrease from the $1.33 EPS reported in the same quarter last year. Despite this decline, MSM has consistently exceeded consensus EPS estimates in three of the past four quarters.

MSM's revenue for the quarter ending in May 2025 was approximately $971.1 million, slightly above the estimated $969.2 million. This represents a 0.10% positive surprise, although it's a slight decline from the $979 million reported in the same period last year. The company has surpassed consensus revenue estimates twice in the last four quarters, demonstrating resilience in a competitive market.

The company's operating income for the fiscal third quarter stood at $82.7 million, with an adjusted figure of $87.2 million, resulting in an operating margin of 8.5%, or 9.0% on an adjusted basis. CEO Erik Gershwind noted that the performance met expectations for average daily sales and operating margins, with early signs of progress in strategic focus areas.

MSM's financial metrics provide insight into its market valuation. The price-to-earnings (P/E) ratio is approximately 22.79, while the price-to-sales ratio is about 1.29. The enterprise value to sales ratio is around 1.44, and the enterprise value to operating cash flow ratio is approximately 13.27. The debt-to-equity ratio is about 0.43, indicating moderate debt levels, and the current ratio is around 1.92, reflecting a strong ability to cover short-term liabilities.

• MSC Industrial Direct Co., Inc. (NYSE:MSM) is expected to report an EPS of $1.03 and revenue of $970 million for the upcoming quarter.
• The company is seeing a moderation in revenue declines with a return to positive growth anticipated by Q4 due to stabilizing demand and strategic pricing.
• Despite a year-over-year decline in earnings, MSM is expected to surpass earnings estimates, potentially influencing a near-term price increase.

MSC Industrial Direct Co., Inc. (NYSE:MSM), a leading distributor of metalworking and maintenance, repair, and operations (MRO) products and services, is set to release its quarterly earnings on July 1, 2025. Wall Street is estimating an earnings per share (EPS) of $1.03 and projected revenue of approximately $970 million.

The company is experiencing a moderation in sequential revenue declines, with expectations of a return to positive growth by Q4. This positive outlook is attributed to stabilizing demand and strategic pricing. The focus on high-touch solutions and digital investments is gaining momentum, positioning MSM for long-term revenue growth as industrial demand recovers.

Despite expectations of a year-over-year decline in earnings due to lower revenues for the quarter ending May 2025, MSM is anticipated to surpass earnings estimates, as highlighted by Zacks Investment Research. The earnings report could significantly influence the stock's near-term price, with potential increases if results exceed expectations.

MSM's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 21.42 and a price-to-sales ratio of about 1.22. The enterprise value to sales ratio is around 1.36, while the enterprise value to operating cash flow ratio is approximately 12.56. These figures reflect the market's valuation of MSM's sales and cash flow.

The company's debt-to-equity ratio is approximately 0.43, indicating a moderate level of debt relative to its equity. Additionally, MSM maintains a current ratio of about 1.92, suggesting its ability to cover short-term liabilities with its short-term assets. The earnings yield for MSM is about 4.67%, reflecting the earnings generated per dollar invested.

• MSC Industrial Direct Co., Inc. (NYSE:MSM) reported an EPS of $0.72, surpassing the Zacks Consensus Estimate.
• Revenue for the quarter was $891.7 million, missing the estimated figures and indicating a year-over-year decrease.
• The company's operating income stood at $62.2 million, with a solid operating margin reflecting efficient operational management.

MSC Industrial Direct Co., Inc. (NYSE:MSM), a leading name in the industrial supply sector, recently unveiled its fiscal second-quarter earnings, presenting a mixed financial performance. As a key supplier of maintenance, repair, and operations (MRO) supplies, MSM competes with industry giants like Grainger and Fastenal, showcasing its significant role in the market.

For the quarter ending April 3, 2025, MSM reported an earnings per share (EPS) of $0.72, beating the Zacks Consensus Estimate of $0.68. This achievement represents a 5.88% surprise over expected figures, though it marks a decline from the previous year's $1.18 EPS. MSM has consistently outperformed earnings expectations, surpassing them twice in the past four quarters. In the preceding quarter, the company reported a 17.81% surprise with an EPS of $0.86 against an anticipated $0.73.

Despite the positive EPS outcome, MSM's revenue for the quarter was $891.7 million, not meeting the expected $977.6 million. This shortfall represents a 4.7% decrease in net sales year-over-year and missed the Zacks Consensus Estimate by 0.78%. Nevertheless, MSM has exceeded consensus revenue estimates twice in the last four quarters, demonstrating resilience in a challenging market environment.

The company's operating income was reported at $62.2 million, with an adjusted figure of $63.7 million after accounting for restructuring and other costs. The operating margin was noted at 7.0%, or 7.1% when adjusted. CEO Erik Gershwind highlighted efforts to expand MSM's solutions footprint and sustain momentum in the Public Sector, amidst low industrial demand. Initiatives such as website upgrades and enhanced marketing campaigns are aimed at fostering core customer growth.

Financially, MSM boasts a price-to-earnings (P/E) ratio of approximately 17.89, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 1.11, with the enterprise value to sales ratio around 1.25. The enterprise value to operating cash flow ratio is approximately 10.97, showcasing the company's valuation in relation to its cash flow from operations. With a debt-to-equity ratio of 0.42 and a current ratio of 1.93, MSM demonstrates a balanced approach to managing its financial obligations and liquidity.

• MSC Industrial Direct Co., Inc. (NYSE:MSM) reported an EPS of $0.72, surpassing the Zacks Consensus Estimate.
• Revenue for the quarter was $891.7 million, missing the estimated figures and indicating a year-over-year decrease.
• The company's operating income stood at $62.2 million, with a solid operating margin reflecting efficient operational management.

MSC Industrial Direct Co., Inc. (NYSE:MSM), a leading name in the industrial supply sector, recently unveiled its fiscal second-quarter earnings, presenting a mixed financial performance. As a key supplier of maintenance, repair, and operations (MRO) supplies, MSM competes with industry giants like Grainger and Fastenal, showcasing its significant role in the market.

For the quarter ending April 3, 2025, MSM reported an earnings per share (EPS) of $0.72, beating the Zacks Consensus Estimate of $0.68. This achievement represents a 5.88% surprise over expected figures, though it marks a decline from the previous year's $1.18 EPS. MSM has consistently outperformed earnings expectations, surpassing them twice in the past four quarters. In the preceding quarter, the company reported a 17.81% surprise with an EPS of $0.86 against an anticipated $0.73.

Despite the positive EPS outcome, MSM's revenue for the quarter was $891.7 million, not meeting the expected $977.6 million. This shortfall represents a 4.7% decrease in net sales year-over-year and missed the Zacks Consensus Estimate by 0.78%. Nevertheless, MSM has exceeded consensus revenue estimates twice in the last four quarters, demonstrating resilience in a challenging market environment.

The company's operating income was reported at $62.2 million, with an adjusted figure of $63.7 million after accounting for restructuring and other costs. The operating margin was noted at 7.0%, or 7.1% when adjusted. CEO Erik Gershwind highlighted efforts to expand MSM's solutions footprint and sustain momentum in the Public Sector, amidst low industrial demand. Initiatives such as website upgrades and enhanced marketing campaigns are aimed at fostering core customer growth.

Financially, MSM boasts a price-to-earnings (P/E) ratio of approximately 17.89, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 1.11, with the enterprise value to sales ratio around 1.25. The enterprise value to operating cash flow ratio is approximately 10.97, showcasing the company's valuation in relation to its cash flow from operations. With a debt-to-equity ratio of 0.42 and a current ratio of 1.93, MSM demonstrates a balanced approach to managing its financial obligations and liquidity.

MSC Industrial Direct Co., Inc. (NYSE:MSM) is a leading distributor of industrial tools and supplies, with its quarterly earnings report eagerly anticipated on April 3, 2025. Analysts are forecasting an EPS of $0.68 and revenue of $908.3 million, highlighting the company's significant role in the industrial supply sector.

The Zacks Consensus Estimate for MSM's fiscal second-quarter revenues is set at $900.9 million, indicating a 3.7% decline from the previous year. Despite this, the EPS is estimated at $0.68, marking a substantial year-over-year decrease of 42.4%. Over the past 60 days, these earnings estimates have remained stable, reflecting consistent analyst expectations.

Historically, MSM has outperformed the Zacks Consensus Estimate in two of the last four quarters, matched it once, and missed once, achieving an average earnings surprise of 3.5%. This performance suggests MSM could potentially exceed earnings expectations in its forthcoming report, despite the anticipated decline in both earnings and revenues for the quarter ending February 2025.

Key financial metrics shed light on MSM's market valuation, with a price-to-earnings (P/E) ratio of approximately 18.44, a price-to-sales ratio of about 1.15, and an enterprise value to sales ratio of around 1.28. Furthermore, MSM's debt-to-equity ratio stands at 0.42, and its current ratio is approximately 1.93, indicating a stable financial position that could positively influence investor sentiment post-earnings release.